Section IP 1 — Income Tax Act 2007: When this subpart applies

IP 1 When this subpart applies Breaches of continuity and commonality (1) This subpart applies if either or both the following breaches occur: (a) when commonality of ownership required by section IC 5(1)(a) (Company B using company A's tax loss) is not met during a tax year (a commonality breach ): (b) when continuity of ownership required by section IA 5(1) (Restrictions on companies' loss balances carried forward) is broken during a tax year, or when a new or existing company joins a group of companies during a tax year (a continuity breach ). Relationship with subparts IA, IC, and ID: part-year calculations (2) The general rules for the treatment of tax losses in subparts IA , IC , and ID (which relate to the general use and grouping of tax losses) apply, as modified or overridden by the provisions of this subpart, to— (a) a part-year tax loss as if it were a tax loss for a tax year: (b) part-year net income as if it were net income for a tax year: (c) the common span as if the period of time were a tax year. Defined in this Act: common span , net income , tax loss , tax year , Compare: 2004 No 35 s IG 2(4)(e), (f), (5)(e), (f) Section IP 1(1)(a): substituted (with effect on 1 April 2009), on 6 October 2009, by section 301(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section IP 1(1)(b): substituted (with effect on 1 April 2009), on 6 October 2009, by section 301(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).